Welcome!

@CloudExpo Authors: Liz McMillan, LeanTaaS Blog, Pat Romanski, Kevin Jackson, Elizabeth White

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Blog Feed Post

Cloud Storage: Where’s the ROI?

Cloud infrastructure is not an investment

Return on investment (ROI) of using the cloud has recently become a popular topic of discussion, though not in a way you might expect. An interesting article by JP Morgenthal entitled There is no ROI in cloud computing presents the opinion that cloud services simply have no ROI. A second article by Joe Onisick entitled Private Cloud: It’s Not About ROI effectively repeats a similar message in the context of private clouds.

While both pieces appear controversial on the surface, they accurately portray that cloud infrastructure is not an investment – rather, cloud offers a way to displace or mitigate traditional large investments in favor of smaller recurring expenses over time. As JP Morgenthal suggests, calculating ROI in the cloud is similar to calculating ROI on a decision to eat out. Since eating out is an alternative to investing in a refrigerator full of food, you are averting an investment rather than making one.

So how does cloud storage fare in this ROI analysis? With cloud storage, the same ROI concept holds true. Cloud storage can indeed save you money when you are buying from a provider with greater purchasing power, more efficient data centers and shared, instead of dedicated administration. In fact, a recent article by Alex Williams cites a Forrester study concluding Cloud storage costs 74% less than running data storage in-house. However, there is no up-front investment to provide you a return.

Now you may astutely point out that sometimes there are capital purchases for cloud storage gear, such as cloud storage gateways or appliances. However, you are still displacing a much larger capital purchase with a smaller capital purchase and a monthly recurring bill. Effectively, a hybrid cloud storage solution reduces your up-front investment compared to traditional on-premise storage, In fact, if a hybrid solution does not reduce your investment, you may want to seek an alternative that does.

Overall, the case is quite compelling for purchasing data storage as a service. First, data storage is a depreciating asset – the cost of data storage drops significantly over time and, because you purchase through a cloud provider, you are always paying market rate for what you use instead of pre-purchasing at a premium. Second, you may realize increased IT agility using cloud storage. Enterprise storage is a major deployment effort. With cloud, you can add storage capacity in a matter of minutes, enabling your business to react faster to changing IT requirements. Having the option to subtract that storage at any time simply reinforces the agility story and is not an option with traditional data storage purchases.

But if there is no ROI for cloud storage, how can you ever convince your finance folks to move forward with it?  Well, the answer lies in the opportunity cost of money that you would have put toward a significant capital investment. Perhaps that money can go toward your marketing budget or lead generation. Alternatively, the money might hire another sales resource that produces incremental revenue for the business — all while simultaneously reducing your 3-5 year total cost of ownership (TCO) of data storage.

In closing, if your on-premise data storage is at or near its capacity, consider its replacement cost. Now consider avoiding that capital purchase by using cloud storage instead — and do let us know how you decide to spend the capital you just freed up.

Read the original blog entry...

More Stories By Nicos Vekiarides

Nicos Vekiarides is the Chief Executive Officer & Co-Founder of TwinStrata. He has spent over 20 years in enterprise data storage, both as a business manager and as an entrepreneur and founder in startup companies.

Prior to TwinStrata, he served as VP of Product Strategy and Technology at Incipient, Inc., where he helped deliver the industry's first storage virtualization solution embedded in a switch. Prior to Incipient, he was General Manager of the storage virtualization business at Hewlett-Packard. Vekiarides came to HP with the acquisition of StorageApps where he was the founding VP of Engineering. At StorageApps, he built a team that brought to market the industry's first storage virtualization appliance. Prior to StorageApps, he spent a number of years in the data storage industry working at Sun Microsystems and Encore Computer. At Encore, he architected and delivered Encore Computer's SP data replication products that were a key factor in the acquisition of Encore's storage division by Sun Microsystems.

@CloudExpo Stories
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...